Government under pressure to follow example of other European countries

The Treasury is under pressure this morning to stump up more cash to help self-employed people during the coronavirus outbreak.

Trade groups representing self-employed workers have criticised Rishi Sunak鈥檚 rescue package for businesses, announced on Friday, which promised to pay at least 80% of the salaries of employers鈥� staff but failed to extend the same help to the self-employed.

Rishi Sunak addressing coronavirus press conference at Number 10

The chancellor (pictured) said self-employed workers, who account for 37% of the construction workforce, would be granted 拢94.25 a week in an equivalent to statutory sick pay, gain access to full universal credit and have their self-assessment payments deferred from July to January.

But following a backlash from trade groups, secretary of state for housing, communities and local government Robert Jenrick yesterday said the Treasury would 鈥渞eview鈥� the provisions given to self-employed workers.

It follows comments by chief secretary to the Treasury Stephen Barclay on Saturday, who said that helping the self-employed would be 鈥渙perationally difficult鈥�.

Jenrick admitted the package was not 鈥減erfect and the chancellor is going to keep reviewing the situation and see if there are further measures we can take鈥�.

The Federation of Small Businesses has been working with the government over the weekend to find a solution. FSB director Craig Beaumont said: 鈥淭here is hope, so we are asking the self-employed to hang on in there for a little longer.鈥�

It was reported over the weekend that the government may be considering paying grants worth 80 per cent of self-employed workers鈥� previous average incomes, based on tax returns from the past three years.

A similar scheme has been announced in Norway, while in Germany the government has set aside 鈧�50bn in aid for small businesses which can be applied for online.

Self-employed workers in France whose income has dropped to less than 70% year on year because of coronavirus can apply for a 鈧�1,500 payment from the government and for their rent, gas and electricity bills to be suspended.

In Spain, self-employed workers are receiving an automatic payment of 鈧�660 if they have lost more than 75% of their turnover along with suspension of social security contributions.